1. Field of the Invention
This invention relates generally to the field of online auctions and, more particularly to systems and methods for deploying an online auction platform with a virtual property ownership incentive program.
2. Description of the Related Art
In recent years, online auctions have gained widespread popularity and acceptance. Currently, bidding for millions of items of virtually limitless variety is conducted through an ever-increasing number of online auction sites. These auction sites offer consumers a convenient way to access an endless range of merchandise available from around the world which can be readily searched, viewed, and purchased online. Furthermore, online auction sites give sellers a readily accessible presence or “storefront” from which to market items to a very large population of potential buyers.
As the popularity of this method of commerce continues to grow, so too does the number of sites and companies which offer online auctions. Presently, there are many different online auction sites which have begun to overlap and compete with one another in terms of listings (including the number and types of merchandise available) and customer base (the number of people viewing and bidding on available goods). This increase in competition has the potential to dilute the effectiveness of the online auction format as the resources vital to the success of online auctions have become widely distributed in a manner that makes it less convenient and more difficult for consumers to access.
A further development in the online auction marketplace is that a select few online auction sites currently predominate in terms of merchandise availability and customer base. Smaller companies wishing to conduct online auctions often find it difficult to compete with larger, more widely accepted companies. To this end, some online auction sites have attempted to gain a larger share of the consumer market by offering reduced fees for listing and auctioning merchandise. This approach has been met with only limited success. People generally like to participate in online auctions through a few well-known and established auction sites. Even the lure of “free” listings and commissions has not been able to induce buyers and sellers to change their listing, bidding, and purchasing behavior to any great extent. As a result, there are a select few auction sites that continue to monopolize the marketplace. There is little if any chance for this trend to change in the absence of a significant incentive that would provide the necessary stimulus to induce both buyers and sellers to consider using other less well-known online auction sites.
A further problem which arises from the current trends in online auctioning is that buyers and sellers receive only limited benefits from using a particular auction site. Proceeds from listing fees and closing costs are typically collected by the online auction site and this money is lost from the transaction between the buyer and the seller. Aside from the sale or purchase of the actual merchandise, the buyer and seller do not receive any additional benefit in the form of compensation from the online auction site for their business. Lacking any true incentive, a given auction site can find their buyers and sellers leaving for more well-known auction sites which offer essentially the same services. In the online auction site marketplace, there has not been devised a method by which to establish firm loyalty between the buyers, sellers, and the particular online auction site.
Moreover, while the online auction market is a proven business model, there are still a large number of people who are hesitant to participate in online auctions for the fear of becoming victims to fraudulent schemes. The anonymity afforded by the Internet has given rise to various forms of scams that have been particularly prevalent in online auction environments. For example, sellers can disappear after receiving payment from the buyer without delivering the merchandise. Similarly, buyers can use fraudulently acquired credit cards or checks to purchase items and then disappear after receiving the item. Additionally, since most online sales transactions are conducted without the buyer having seen the actual merchandise, buyers sometimes find themselves receiving an item that is inferior to what was described to them by the seller. These types of concerns associated with the online auction environment have kept many people on the sideline who would otherwise like to take advantage of the broad reach and convenience of online auctions to buy and sell merchandise.
Moreover, people who do not have access to computers or who are not familiar with how to navigate through an online auction site are also precluded from taking advantage of online auctions. Although computers and the Internet have become a ubiquitous part of modern life, there are still a large number of people who do not own computers or are computer-illiterate. Consequently, these people cannot benefit from the advantages of participating in online auctions and must rely on traditional channels in selling or buying goods.
From the foregoing, it can be appreciated that there is a need for an incentive program that is designed to enable smaller online auction sites to more effectively promote themselves and compete with the few online auction companies that currently dominate the marketplace. To this end, there is a need for an effective online auction business model that creates trust and loyalty between buyers, sellers, and the online auction site to ensure stability of the population base served by the online auction site. Moreover, there is also a need for an effective method of enabling people who do not have access to computers or are computer illiterate to take advantage of the opportunities online auctions provide.